STAK · STAK Inc. Ordinary Shares

STAK Inc. reported first half fiscal 2026 results showing revenue growth of 13.41% to $19.2 million, primarily driven by increased order volumes and higher sale prices for specialized oilfield vehicles, though partially offset by reduced demand for specialized oilfield equipment. Cost of revenues increased faster at 18.99% to $14.0 million due to higher sales volume and production costs for newly developed vehicles, leading to gross profit remaining steady at $5.2 million but with margin compression to 27.24% from 30.65%. Management noted that the steady gross profit resulted from higher sales volume offsetting lower unit profit margins, influenced by promotional sales policies to expand market presence. Operating expenses showed mixed trends: selling and marketing expenses declined 13.76% to $0.5 million as revenue growth came from direct management-led business development rather than commission-based channels. General and administrative expenses rose 27.27% to $1.0 million, driven by a $0.7 million increase in professional fees offset by lower provisions for credit losses. Research and development expenses edged up 2.69% to $1.6 million tied to ongoing equipment development stages. Operating income dipped to $2.1 million from $2.2 million, with net income falling to $1.8 million and EPS to $0.14. Balance sheet strengthened with cash rising to $1.9 million and total assets to $29.3 million, supported by positive operating cash flow of $0.7 million versus prior year usage. Short-term borrowings increased to fund operations amid inventory buildup to $18.3 million. These results highlight STAK's focus on volume growth in niche oilfield vehicles amid cost pressures, with no forward guidance provided.